Tag Archives: Loan

Save Money by Getting Rid of Mortgage Insurance

In 1998, Congress passed the Homeowners Protection Act, which requires lenders to drop the PMI when a loan balance pays down to 78 percent of the original amount. This appears straightforward enough, but how long will it take to pay

What Mortgage Insurance Costs You?

Again, the mortgage industry is all about risk, and what determines your monthly premium is your down payment and your credit score.

Understanding Points and Buydowns (4)

Points are normally charged by mortgage lenders as a way of increasing their upfront profit and of offsetting the uncertainty of a loan that would normally go fifteen to thirty years. However, since few mortgages go to their full term

Understanding Points and Buydowns (3)

However, in a competitive market, if you shop around, you may find point discounts as high as one-quarter of 1 percent. Plus, the length of time that you want to lock in the discounted rate is an important factor; a

Understanding Points and Buydowns (2)

Buydowns are mortgage programs whereby a third party pays some points to reduce the buyer’s interest rate and thus help a home buyer qualify for the mortgage. For example, as a concession, a seller may pay four points to the